What's happening
The bill shifts funding for the Public Service Department and commission from utility assessments to the state treasury starting April 2020.
Why it matters
Shifts financial responsibility for regulatory oversight. The bill moves the cost burden for the Public Service Department and its commission from being funded by utilities and regulated entities (through assessments) to being fully funded by the state treasury starting in fiscal year 2020. This could alter the relationship between regulators and the industries they oversee.
Potential impact on utility rates and consumer costs. By removing the requirement for utilities to pay for regulatory costs, utilities may have less justification for passing these costs onto consumers through higher rates, potentially resulting in lower utility bills.
Changes public accountability and oversight mechanisms. With the state treasury now funding these departments, legislative scrutiny of budgets and spending may increase, potentially leading to greater transparency but also subjecting oversight agencies to budgetary constraints or political pressures.
Affects Long Island Power Authority and similar entities. The same funding shift applies specifically to the department’s responsibilities regarding the Long Island Power Authority, which could impact how regional utility oversight is financed and managed.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
State Pays Utility Oversight Costs
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to corporations, authorities and commissions
- Delivered to assembly
- Passed senateVote 58–4
- Ordered to third reading cal.1047
- Committee discharged and committed to rules
- Referred to energy and telecommunications
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8407
IN SENATE
May 4, 2018
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to amend the public service law, in relation to certain costs and expenses
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 1 and 1-a of section 18-a of the public service law, subdivision 1 as amended by section 2 of part NN of chapter 59 of the laws of 2009 and subdivision 1-a as added by section 2 of part A of chapter 173 of the laws of 2013, are amended to read as follows:
1. All costs and expenses of the department and commission shall be paid pursuant to appropriation on the certification of the chairman of the department and upon the audit and warrant of the comptroller. The state treasury shall be reimbursed therefore by payments to be made thereto from all moneys collected pursuant to this chapter. [The] For state fiscal years beginning prior to April 1, 2019, the total of such costs and expenses shall be borne by the public utility companies (including for the purposes of this section municipalities other than municipalities as defined in section eighty-nine-l of this chapter), corporations (including the power authority of the state of New York), and persons subject to the commission's regulation, to be assessed in the manner provided in subdivisions two, three and four of this section and section two hundred seventeen of this chapter. Provided however for the state fiscal year that begins on April first, two thousand nineteen, such assessment shall be in an amount that is fifty percent of the amount calculated in subdivisions two, three and four of this section and section two hundred seventeen of this chapter. Provided further for state fiscal years that begin on and after April first, two thousand twenty, the amount of such assessment calculated in subdivisions two, three and four of this section and section two hundred seventeen of this chapter shall be zero and all costs of the department and commission shall be paid by the state treasury.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15613-01-8
S. 8407 2
1-a. All costs and expenses of the department related to the department's responsibilities under section three-b of this chapter shall be paid pursuant to appropriation on the certification of the chairman of the department and upon the audit and warrant of the comptroller. For the state fiscal [year] years beginning on April first, two thousand fourteen and [each state fiscal year thereafter] beginning prior to April first, two thousand twenty, payments are to be made from all moneys collected from the Long Island power authority pursuant to this section. The total of such costs and expenses shall be assessed on such authority in the manner provided in subdivisions two, three and four of this section. Provided however for the state fiscal year that begins on April first, two thousand nineteen, such assessment shall be in an amount that is fifty percent of the amount calculated in subdivisions two, three and four of this section. Provided further for state fiscal years that begin on and after April first, two thousand twenty, the amount of such assessment calculated in subdivisions two, three and four of this section shall be zero and all costs of the department and commission shall be paid by the state treasury.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public service law, in relation to certain costs and expenses
Purpose
This legislation will fund the expenses of Public Service Commission through the state's General Fund and eliminate the 18-A assessment.
Summary of provisions
Section one of the bill provides that for the New York State fiscal year beginning on April 1, 2019, the assessment pursuant to Section 18-a of the Public Service Law shall be assessed at an amount equal to half the rate assessed for fiscal year 2018, and eliminates the 18-a assessment thereafter commencing in fiscal year 2020. Further, any funding short- ages experienced as a result of the elimination of the 18-a assessment will be borne from the state treasury (General Fund).
It also establishes, on a similar schedule, the elimination of the 18-a assessment for the Long Island Power Authority.
§ 2 - provides that this act shall take effect immediately.
Existing law
Under the current law, the Public Service Commission is funded by the 18-A assessment and passed through to utility customers through higher rates.
Justification
New Yorkers pay some of the highest energy costs in the nation. The 18-A assessment is borne by utility customers through higher utility rates. By phasing out the 18-A assessment, hardworking New Yorkers will see reductions on their utility bills.
Legislative history
New bill.
Fiscal implications
FY 2019 : $0; FY 2020: $45 million; FY 2021 and thereafter ; $90 million.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.